Legal protection proceedings have been initiated at court in relation to Vitronic Baltica and partners, says the company’s Board member Sergey Borisov.

Given the current situation with creditors and the financial difficulties Vitronin Baltica and partners are going through, the Court received an application proposing to initiate legal protection proceedings on July 26.

In accordance with Part one of Section 3 of the Insolvency Law «Legal protection proceedings are an aggregate of measures of a legal nature, whose purpose is to renew the ability of a debtor to settle their debt obligations, if a debtor has come into financial difficulties or expects to do so.» This is why Vitronic Baltica and partners turned to the rights offered by the law to protect their interests and the interests of their creditors, Borisov explained.

On July 27, the court initiated legal protection proceedings in relation to Vitronic Baltica and partners. In accordance with the court’s decision, Vitronic Baltica and partners are obligated to work for two months and coordinate the plan for legal protection measures with their creditors.

The approval of the final version of the legal protection measure plan will be decided by the court.

The company is certain that the protection provided by the law will give the company and its partners an opportunity to successfully manage its relations with its creditors, and allow the company to fulfil its socially significant project.

Borisov says that the company executes delegated functions of state institutions, taking on additional burdens that were not initially recognized as such and which emit neither support nor understanding of the state and public.

The public has the wrong impression about the financial gains and investments of Vitronic Baltica and partners. Ever since the beginning of the project’s realization, the company invested more than three million LVL, and received a mere 220 thousand LVL back, which is merely 7.3% from the invested amount. As a result of this fact, the company now has a number of unfulfilled obligations before its creditors, who, based on what the people say, pressured the company, cancelled the supply of products and service offers, which worsened the project’s realization even more, Borisov explains.

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